Q1 2021 Autoliv Inc Earnings Call
Thursday Thursday Thursday
Yep. Yep. Yep. Yep.
Welcome to the q1 20-21 autoliv Inc. Earnings conference call. So the call all participants will be in listen-only and our switch w. A question-and-answer session wage and please present on this trap BP investors relations. Please begin your meeting.
Thank you. Welcome everyone. To our first quarter 2021 Financial results earnings presentation on this call. We have our president and CEO and our life. Christine. And I am on the shop. VPN reservations during today is called our CEO will provide a brief overview of our first quarter results, as well as providing update on our general business and market conditions.
Following Miguel. It will provide further details and commentary around the financials. We will then remain available to respond to your questions. And as usual, the slides are available through a link on the homepage of corporate website.
Turning the page.
We have the Safe Harbor statement, which is an integrated part of this presentation and includes the Q&A that follows.
During the presentation, we will reference some non-gaap measures. The reconciliation of historical you to non-gaap measures or disclose in our quarterly press release and Thursday that will be filed with with the FEC. Lastly, I should mention that this call is intended to conclude at 3 p.m. Central European Time. So please follow a limit of two questions per person.
I now hand over to our CEO. Thank you. And looking now into the q1 2021 highlights on the next slide.
Before we start with the formal presentation, I would like to acknowledge our employees for their hard work and commitment to health and safety cost control quality and delivery precision.
Robert Focus throughout this crisis, has been the health and safety of our employees and to come out of it as a stronger company. Although the COVID-19 pandemic is not yet behind me. It's a four months over the past three quarters, shows that we have built the solid platform towards our mid-term targets.
The global automotive industry continues to wrestle with the semiconductor shortage and other components Supply disruptions while managing a strong and customer demand for new vehicles.
In light of this nice vehicle production in q1 2021, according to IHS, markit exceeded expectations from a few months ago as a consequence of the strong demand and component Supply disruption, the industry is facing headwinds from rising raw materials and commodity prices.
Very pleased. That's our operations, reported strong sales, growth profits and cash flow.
We continued to execute on our strong order book and our sales increased organically by 18% which was more than four percentage points, better than the increase of June 9th week reproduction. This was despite negative Geographic light vehicle production, mix with high growth in lower content per vehicle markets off.
It's solid. Operating income was the result of strong sales growth, good operation execution cost control and effects from the structural efficiency programs dead.
I am pleased that we improved the adjusted operating margin significantly versus both 2020 and 2095.
Oh, strong free. Cash flow generation allowed further. Delivering and our leverage ratio is now back inside our target range of 0.5 x 21.5 * 8.
We continue to evaluate opportunities for shareholder value creation.
Our ordering take was at the similar level as last year.
Based on expected favorable model mix the strong performance in the first quarter and continued tight cost control. We again confirm our full year 2021 guidance.
Looking now on the financial highlights on the next slide.
Our Consolidated net sales increased by almost four hundred million dollars or by 21% compared to q1 2020.
These supposed to highest p<expletive>ive safety business days for a first quarter in our history the Chinese market contributed to more than half of the sales tax increase as light vehicle production normalized in China and we continued to gain market share.
Adjusted operating income excluding cost to capacity alignments increased by More than 70% to 237 million dollars wage adjusted operating margin increased by 320 basis points to 10.6%
Operating cash flow, increased by Thirty million to 186 million.
Looking now on sales development on the next flight.
I am very pleased that our organic sales growth out to form the global light vehicle production, by more than four percentage points, this was achieved despite adverse geographical mix effects, as light vehicle production, grow strongly in lower content provision Market.
It was.
Only in China India South Korea and South America where light vehicle production actually increased.
Parent light vehicle production forecast suggests a significant positive geographical mix effects in the second quarter.
We had a solid sense development in all regions driven by new launches and positive vehicle mix.
all regions out performed light vehicle production by 6 to 23 percentage point
Saints or replacement deflators is now on a level where it's it's where its impact or our sales development is insignificant.
Looking on the next slide.
We had several important functions during the quarter including products for high-volume vehicles such as the Jeep Grand Cherokee L Mitsubishi Outlander and pixel 3 white.
The models shown on this slide have a child to live content for vehicles between 132 almost $600 US dollars.
Two of the vehicles or pure EV. And most of the models will be available with some sort of electrified Powertrain.
The long-term Trend to hire contact vehicle is supported by an introduction of front, airbag knee air bags and more advanced seatbelts, for example, the new Mitsubishi Outlander as a front airbag, as well as two airbags from out to live.
I know Honda over to our CFO Christine who will talk about the financials on the next slide.
Thank you. This slide highlights are a key figures for the first quarter.
Our net sales were over two point, two billion, a 21% increase compared to the same quarter last year compared to the first quarter. 2019. It was an increase of 3%. Wage light vehicle production, being 12%, lower.
Profit increased by $127 million and the gross margin increased by 250 basis points.
Hi gross, margin was primarily driven by the higher sales and direct labor and material efficiency.
And the quarter neither capacity alignments lower Anti-Trust related matters has an impact on the operating profit.
Yeah adjusted operating income increased by $100 million to 237 million due to the higher gross profit.
He adjusted operating margin improved by 320 basis points versus q1 twenty-twenty and improved by 290 basis points versus q1 2019
The opening Tesla was 186 million second highest for any first quarter. This was achieved despite adverse effects from changes in working capital.
Reported earnings per share, more than doubled to $1.79.
Or adjusted a ton of capital employed was 26% and return on Equity was 25%.
The good performance in r o, c e and r o e, shows our commitment to and focus on Capital efficiency.
Looking now on the adjusted operating margin bridge on the next slide.
Or adjusted operating margin of 10.6% was 320 basis points higher than in the first quarter of 2020.
The impact of raw material price changes was smaller than the first quarter.
FX impact the operating margin negatively by 20 basis points. This is caused by transactional effects from a number of different currency pairs. The most significantly negative impact a stronger Canadian dollar versus the US dollar.
As illustrated by the chart adjusted operating margin was positively impacted by lower sg&a and rde of 110 basis points mainly due to lower personnel office in relation to sales.
Operational improvements contributed with 230 basis points. This was a result of higher sales cost discipline and effects from a structure structural and efficiency programs partly offset by the negative impact of direct COVID-19 related costs around five million and indirect COVID-19 related in efficiencies in both supply chain and manufacturing jobs.
Support from governments in connection with the pandemic was not Material in the quarter.
Looking on the next slide.
For the first quarter of 2021 operating cash flow was 186 million an increase of thirty million compared to last year the increase in operating cash flow was a result of the higher-income partially offset by cash for the structure efficiency programs and changes and trade working capital.
Trade working capital developed unfavorably with increased inventory and receivables but lower payables especially inventories were impacted by the supply chain on certain age.
Capital expenditures amounted to 93 million in the quarter or 4.1% of sales compared to last year Capital expenditures increased by five million or by 6%
free cash flow was 93 million an increase of twenty five million a year.
Cash conversion in the last 12 months was close to two hundred percent results of the low capex positive operating working capital development and non-cash items.
Luke.
See, on the next slide.
We have as you know, a long history of a prudent Financial policy and our balance sheet. Focus remains unchanged
Nev it ratio improved from a peak of 2.8 times. At the end of the second quarter, 2022, 1.4 times at the end of q1 20-21.
The improve leverage in the quarter was a result of our net debt decreasing by $109 million while. If it over the last 12 months, increased our 111 Million worth noting that our next guest is now half a billion lower than a year ago.
Horst wrongfully, Tesla generation should shoot an hour further deleveraging and provide opportunities for shareholder value creation.
Nope, that are EBT. A calculation has been redefined to exclude other, non-operating items and income from Equity method Investments, historically, BTA. And leverage ratio has been recalculate wage resulted in minor adjustments.
As we are back inside inside our target range, for the leverage ratio, we will no longer guide for this measure.
Go to the next slide.
During the first quarter. We have seen substantial increases in stock market prices for raw materials and commodities.
As we mainly by components the effects from changes in stock market prices are mitigated and delayed through longer-term Supply contracts. Also or volatility is normal. Should know where when the whole ceiling T in the stock market there for the impact was relatively small in the first quarter.
We also have some but limited contractual p<expletive>-throughs to our customers.
We also mitigate to a material impact through consolidation of and negotiations with suppliers as well as redesign of products. But based on the current situation, we estimate the the full year. 2021, we will face an operating margin headwind off around 90 basis points from Blue material. Price changes or previous estimate was 40 basis points.
On to the next slide.
The recovery in the automotive demand and production compete with increasing demand from The Wider, consumer electronics sector creating disruptions to the supply of system. You've kind of conductors
Jeep makers and are expanding the production capacity but long lead times mean, supply issues will extend well into the second and third quarters.
They're varying estimates as to the length of the semiconductor shortage or current <expletive>essment. Is that Q2 would be as exposed as q1 for stabilization of Supply, May emerge until 2 for this pattern. Will further the store production seasonality and have an effect on the overall level of vehicle output in 2021.
we <expletive>ume at 2 to 3 percentage points negative, net impact, on 20, 21, Global light vehicle production
Or.
So we are not directly affected by the semiconductor supply issues. It impacted our sales and profitability ordered in q1 and it's likely to continue to negatively impact lvp and are strong possibility also in coming quarters. What is most essential for out to live is always to be agile and to efficiently adapt to any sudden changes in our customers production. I know Back to You Met Gala
Thank you for the rig turning to the next slide.
Demand for new vehicles, remains high and inventory levels of new vehicles remains at the record low level in some regions. For example, the inventory levels in North American life or as an 11-year low. The lowest since the Cash for Clunkers program in August of 2009.
Dealers inventory, or at the normal level in China and we believe that European inventory levels are fairly low, especially for premium vehicles.
Assuming that the component availability develops as expected. We expect the good demand and low inventories Support Recovery in light vehicle production in the back half of the year.
We think it's worth a reminder that the second quarter lost year was a virtual standstill for number of weeks in most markets except China.
Hence, the very high growth rate year-over-year expected for the second quarter for 20 21.
as you can see, in the table, on the slide,
Light vehicle production in Europe, is expected to more than double in Q2 while North America is expected to almost triple globally. Light vehicle production is forecasted to grow by around 60% in Q2 the strong light vehicle production. Growth expects it in the high content per vehicle markets, such as Europe and North America, and should support our Global growth. Our performance in the second quarter on to the next slide.
Here. We highlight some positive and negative factors behind our 20 21 indication.
Our full-year 20-21 indications for organic growth and adjusted operating margin or unchanged despite increased Market head. Winds compared with previous Guidance. The light vehicle production Outlook is lowered by almost two percentage points due to component shortage our estimate of how much material price headwinds is increased
From 40 basis points to 90 basis points for 20 21.
Despite these negative effects. We reiterate our full-year guidance as these effects or offset by an improved sales mix and improved cost structure as evidenced by the first quarter performance.
We have the details our indications on the next slide.
DC indications exclude cost for capacity alignment and potential Anti-Trust related matters
We expect sales for to increase organically by around 20% supporting a full year mid-single-digit outperformance versus light vehicle.
Our net sales increase is <expletive>umed to be around 23%, including positive currency translation effects of around 3%.
We expect an adjusted operating margin of around 10%.
Operating cash flow is expected to be in line with the 2020.
Our strategic initiatives gradually or leading good results. And we expect twenty Twenty-One to be a solid stepping stone towards our 20, 20 to 20 25 4 targets, which include a significant growth above light vehicle production as well as a solid operating more than increase.
Turning the page.
This concludes our form and comments for today's earnings call and we would like to open the line for questions. I will now turn it back to a cl<expletive>y. Thank you. If you wish to register for an audio question, please press zero one on your telephone keypad. If you wish or Draw from your question, you may do. So by pressing zero to to cancel from the polling process wage again, please press zero one on your telephone keypad. If you wish to ask an audio question, there will be a brief pause while she waits for questions for you registered.
Our first question comes from calling from Wells Fargo, please go ahead your line is not open.
Oh great. Well, thank you very much for taking the question. Maybe just first question. Now within your target leverage range sales team to be holding up relatively. Well, why not, you know bring back a dividend or a large buyback. Any thoughts are on sort of capital allocation plans going forward.
And as you know I mean this is a board decision and a dividend or buyback decisions that are so this is quarterly, and we revisit that question with the board on a quarterly basis. So in connection with the board meeting. So this is not the topic for today. So we have to come back later when it's it's it's time for it.
Okay.
And it's just looking at the guidance, it implies about 8% over Market. I think you're talking about midterm, 45 you want was just for what's driving down, the very strong growth over Market through the rest of the year. I mean, our launch is coming in at higher levels or launches being. Word and what sort of the driver that
It's at the back of our strong order book, that we have built over the years and and continuing to build. So, this is in line with what we have indicated before and after we continue to deliver on on on that. And as you said, I mean we have slightly increase of of of of launches here that contributes to that. So according to plan,
I know in in in in the mix as we have talked about and we see the content of the vehicle increasing regular full-time in line with what we also set in the past.
Okay, all right. Thank you for taking my question.
Thank you. Our next question comes from Mattias, Holmberg from DMV. Please go ahead. Your line is not open.
Thank you. I have two questions. The first one is on the investigation that I've seen in the US. Were some faulty airbags of GM vehicles or looked at home. Can you make any comments? If if you were involved in this in any way?
I mean, we we are aware of the investigation and I mean it's an important customer of us and we are delivering among other things are bags to the different models, So if GM needs our help in the investigation, we will of course support but based of our upon our understanding we do not see this is an issue for which we should be responsible.
Thank you. And on the recent announcement that you will make disconnect devices for electric vehicles. Can you perhaps elaborate a bit on what type of growth Outlook wage? Do you see for for this business? If it's something that could become material or or sort of more a small side business know I I don't have any numbers to give you at this point, but of course it off and and meaningful effort in terms of growing content per vehicle and and our also role in in the electrical vehicle development so long and we see this as a very interesting opportunity for sure to continue to grow in that part.
Great. Thank you.
Thank you.
Our next question comes from James, piccirillo from KeyBank. Please go ahead.
Hey guys, just on the guide at the unchanged organic growth and I'll pretty margins starting on the top line.
you know, you
You you're acknowledging the two to three point headwind from from the semiconductor shortage, but maintained your organic Revenue growth guide. So is that just a function of of new launches birth, you know? Yeah the new business backlog or is there you know, how much of it is attributable to favorable mix
No, I think it is a several factors. I think I mean first of all we had strong start over a year. We we have also seen the improved sales mix and and yeah, I think that's the main main factors there. So we believe in in in in the numbers that we're talking about here and then see good development in general, but it comes to us living on on our road book.
Let me give you one more. Then one addition to that, in the 4%, off the forms that we achieved in the first quarter with a rather significant change it to Country mix for us in terms of cpv and that, uh, we'll have a much more positive impact especially in the second quarter as we laid out that both Europe and South America will grow substantially faster so that wouldn't be available for us too much larger extent, especially in the second quarter.
Right. And collectively, two to three points. Better than what you expected as of last quarter. Okay. And then on the margins side, you know, the Commodities head when God has essentially doubled vary from 40 basis points to 90, it's about forty million difference. What what's the offset to that? Is it because your top-line wage growth hasn't changed. As is, you know, are the structural savings higher. Just curious on that. Thank you.
Right. I think, first of all, the first quarter shows that we have a very strong Foundation to build on and that the structural efficiency programs are coming through Thursday. We're basically 8% through now on the on the second one and enter complete that in the second quarter, then we see the Strategic initiatives, pay them off as well. And then it is really easy to react to the the demand changes, which I think we we proven that we can that we do in in both the 4th and the 4th Court in the first quarter here. And then we we see good progress and productivity Improvement, both material but also the direct labor side. So that all combined, then it makes it possible for us to offset the the higher impact materials. And that's how we can confirm the guy that's also on the 10% larger side.
Okay. Thanks Chris. Thank you. I will next question comes from traces back from RBC, please. Go ahead.
Thank you very much everyone. You know, I guess last quarter right you talked about how you know, this is what I trust is forecasting for the year, but maybe you saw us some some concern to that forecast. Now, you've you've lowered that right and and acknowledge sort of that. There's a bigger semiconductor. I just want to be clear like is your guidance still am <expletive>uming you know, 12% or are you <expletive>uming something internally a little bit different and it will all stop I'll stop there for a second home know. I I think I mean there's always I mean we we take you on the the visibility that we have and see that and your phone number in time you come we use and external references to that but I think what we have seen you now, is that the semiconductor according to age
would have
Impact in the range of 2, to 3% for the, for the full year and that, of course, is baked into the Outlook. We are, we are talking about here and the net effect is what you see in our guidance stuff off. Okay?
Okay. And then as it's been alluded to a couple of times like your, your outgrowth actually, I guess got better versus versus your prior guidance. I'm wondering if you could, you know, talk a little bit about the, the convexity of that accurate. As you see it to light vehicle production, meaning, you know, if it ends up being, I don't know, 9 or 10% instead of 12:00, like, do you see them meaningful change to your outgrowth or or or organic growth or or it should be, you know, pretty linear.
no, I I would go into any details in terms of the timing and so forth but I think once again here I mean what you see is the choice of a stronghold book that we are delivering and also now in in in also particular now or in combination, with really good mix cl<expletive>, that we also do have a Content growth that we see that this is coming through nicely with with with many new models and new development in in fact that across the globe here, with with more safety parts coming into the vehicle,
Okay. Yeah, I guess I was, I was part of the question. Like, it seems like that. What's keeping the outgrowth is? Automakers are making a stronger mix of product that sort of helping you. So, you would expect something similar to continue. It would seem going through the balance. Yes, yes. Okay. Okay. Thank you.
Thank you. All right. Next question comes from Angela from Honda of Lincoln. Please go ahead.
Thank you very much into questions for me. I'm sorry for calling back on this collaboration of medicine but it would be interesting to hear you. You your view on the potential, having these include that in the interests for reasons, given us the secret significant step up with potentially 811 Million by 20. 25 5, second question, is if coming back to the <expletive>emblies we are starting to pick up some subsidized. Have said that even if they gave you the production to balancing semi shortage, that you will take from other subsidized. Be because they fear that it could be other shortages for the remainder of the year, is this something that has impacted you guys? It will still deliver actually stop production for two weeks or three weeks. So my questions. Thank you.
Thank you, let. Yeah, then kept question first. I can't say that we don't see anything in in the end cap a pipeline. If I put like that, that would include all these kind of products. But I think there is a growing interest for these kind of product. And I think with higher voltage, Vehicles also, uh, we have an opportunity here to provide Power, safety switches, uh, into those vehicles with this collaboration. And so, as I said, we are quite positive about this opportunity but no, no, no number. So details. So at this point in time here, what is the side here? And and the production, I mean, of course we we are delivering to our customer according to that call. We do not have, you know, detail in sight in in how how those Vehicles ultimately are any updates. Yep.
I order or
Fullest and delivered to to the dealers, but it's nothing really that we have heard or seen in an extent. I mean full exam. So so for us it's all about recording to the call logs and exercise and we all think that can I ask that question in this way instead them. For instance given the plan stoppage at General Motors has announced that changed the colors that they provided to you guys after that announcement. I can't comment any specific, you know, I am cool off, but I mean we we once again we are delivering calling to their schedules and we We are following our customers requests. So we and we don't see anything specific behavior in in regards to your comments are so thank you. Thank you.
All the next question comes from, from Jefferies please. Go ahead afternoon, good afternoon. Thanks for taking my question. First one would actually be on bit color on the second quarter. How that started? Because I think you mentioned that Q2 is as exposed to Thursday, same shortage of q1 does that mean you're on a run-rate in in the second quarter that would be similar to to the first quarter in terms of top-line and and earnings?
I mean, that's, you know, I can't comment any outlook on on the the next quarter here.
And I was April started. Any, any color on that?
I mean, I mean, if your question is about related to this evening conductors, I think I mean, we are, you know, stealing the same situation as we were a couple of weeks ago. I think it's just not any worse or any better in that regard. So we we have to see how it plays out. But I think I mean it will take some time before we are through this. Even conducted issue.
Okay, very clear. And my second question would be again on the on the safety switch. Just technology. Why does every car need one or are they competing technology package? He needs one or the Computing technologies that are available for it's not very clear that technology will have broad adoption at all.
No, I think in terms of that particular feature, it's that's the the main solution I would say but it as a voltage Co-op, of course, it becomes even more relevant. So I think we have a role to play there to add safety features into new new type of Technology package that we see from the TV transformation so to speak so
I think.
Good opportunity there to to, to build for the business. Appreciate it. Thank you, thank you. Thank you. I will next question comes from Jeff, please. Go ahead. Thank you. I have to questions. First one coming back to your organic outperformance guidance. If I'm not wrong, you got it from a single digits after four months in the last quarter as well. And either you say that 8% of performance is missing a digit or you are employed higher figure than 12% growth.
Which one is it?
I mean, mean seeing did you? Did you sign? I think it's no, no further comments to to, to that, then I mean, we have built it on on Thursday, same <expletive>umptions as we always do.
Okay, so maybe I should just to say around the twenty. So in the calculation now dead boiler.
Okay, thank you and two questions on the raw material side. I think last time around you you made an <expletive>umption of particularly steel prices month coming down at some point. Is that still the case? And then the second question is it was Zero more than impact in q1. You would have around 1:20 a.m. The remaining three quarters on a 20 basis-point and I'm I guess it's right to <expletive>ume given that that's more more than 120 than in the second of compared to the same quarter.
Yeah. So that the the guidance we gave 40 basis points was on the <expletive>umptions that the limited prices would not increase further from that point of time on which they know, of course. And we're basing all the the 90 basis points on a significantly higher impact, on all our steel components that were buying a cold steel. It's also from actually, the impact, from also, from textile and Plastics is almost equally large. If you compare diagnose diagnose here but we don't <expletive>ume any tailbone from us, a reduced raw material prices going forward. So, based on that, the prices remain at the current levels,
And then, in terms of the timing, yes, it can. The impact in q1 was close to zero, and then it will not be a gradual increase. Q2 Q3 would be the, the peak and the third quarter, and then come down a bit from the fourth quarter. If you look at the year-over-year hit, thank you. Our next question comes from Brian, Johnson from Barclays. Please go ahead. Yes, I too questions a bit more strategic. So, first is around the corner. Looking at China was very significant growth over Market. Does is that just a random accident, you know, or is there something around either your mix in China or a move to a more content than China? That could be a more permanent Tailwind.
no, I think it's
I mean it's not random. I think it's it, is that the you see content for the vehicle or growing? I think also, we have a good position with you. Don't strong customers in in China and we grow in our portfolio there. So I think it's it's a growing Market there. That's that's a support the the Safety products.
Okay. And speaking of safety, obviously your mission and you had a great slide on live. Say you know, when you talk to investors how do they view autoliv is in life? Know it's typing your carbon footprint and is your contribution to saving lives over the decades. Does that come up in the discussions? Does it come up in the S discussions? Or do you think kind of investors with maybe a big focus on green energy? And he's kind of miss the societal improvements. You've been driving?
No, I think I mean I think we believe that we have a strong position in this and of course, saving more lives is, is definitely sustainability, wage activity, no doubt about it. So I think we will well position there. And with that said, I think we, we, of course, still have more to do all along together, in, in the, in all those areas you mentioned. But I think we're well-positioned and you can see they're also in our sustainability report, uh, little bit more details there. But wage, I think we, if we are well-positioned, get good feedback.
Hey, do you think that's reflected in your ownership industry funds and Europe and North America? My impression is the Europeans understand that better than the American is to investors.
Yeah, could be like that. Yes.
Okay, thanks.
Thank you. Our next question, comes from Beyond Dennison from basket Bank. Please go ahead.
Yes, thank you a little bit on on your development. Now in q1 gross margin Vice verses, the Optics, can you say something about the next level going forward? What will lead you to your margin targets for the year or at home right now or or the little bit elevated or or even though
Not in terms of development in in the the first quarter mean of course the volume was one major contributing factor, but then as we highlighted, we also had good both material and labor productivity on the labor side. We have been struggling in the previous quarter's the cause of the constraints that we've had in both from from the volatility in the corners, but also having to operate under covered restrictions in in the factories, but we see that coming through the much better in in the first quarter and then wage is had through the year before and then the the the third element is really the structure efficiency programs where the large part of that is targeted at the the production month overhead structure in in order manufacturing set up that that has been coming through nicely. As I said, there's a little bit left from the the structure efficiency program here ma'am.
Coming through out the main draw see here. And then we remain very very focused on continuing to
Improved productivity, both of the material side and the, and the, the labor cider. But very good development so far and it's also definitely one of the reasons. Also offset down the increased uh head with materials.
I think was nothing extraordinary in in the quite solid the gross motor development in the volumes and less of disturbing in production like I've seen for for quite some time but I think we are we're getting or arms around the pattern that managing a factory. Huh. Um but nothing nothing stored during the quarter that uh yeah would be of any interest.
Perfect. And if you can say something about the potential buyback and et cetera on your gear in situation now when you are within our guidance range, I think report to my answer all here. I mean when it comes to dividends, it's a board decision in connection with Palm Court reviews with the board. We have the board meetings there and I think when it comes to the buyback to be announced and one when it happens so to speak
So nothing to report at this point in time.
Nope, I do. Thank you. Thank you. All right. Next question. Comes from Vijay Rakesh. Please. Go ahead.
Yeah, hi. Thanks, guys. Just briefly. I know you talked about fiscal 21 lvp about 12%. Year-on-year, you see some push out in fiscal, 22. Any thoughts on how he's twenty-two goes up or do you see some of the demands just going away?
if I understand your question for 2022, when it comes to the D,
New question? Yeah, no. I mean we have no, we have no comments on on 2022. But at this point, I mean, we do have a comment around twenty Twenty-One, but I mean, as we've said here, I think we we we see a positive demand situation. We have very low inventories uh, in in the in the Shane supply chain with the illicit as we mentioned here. And right now I'm more of a supply situation, which gorean, and how that will carry into 2022, we will have to come back to
Got it, and the inventor sighed. I know you mentioned you look at Auto inventories 11-year low-interest dealership inventories. Any thoughts on where China is trending interested in replacing same for Europe. I know you mentioned low, but just want to get some Fiat. Number there. I have no numbers. But I mean what we see here is that China inventory seems to be stable. Nothing dramatic there and in Europe little bit on the the Lower Side, I would say anything dramatic there and it's primarily geared towards the more luxury cars or more premium course, I should say in in in Europe for in a life of a lower inventory situation, but that's that's about where we thanks.
Thank you. Thank you. I will next question.
Parts manual Chrysler from Deutsche Bank. Please go ahead.
Yeah, thank you very much. Sorry to come back to us, but I'm still trying to understand the the positive offsets to on the top line to the lower lvp Outlook page, in particular, the improved sales. Make you just go back and and, and explain. Once again, I guess what is playing out? Better than you expected a few months ago, from me sales, may I help you.
I think, I mean, it's, it's the, I mean, one thing is, of course, the mix. I mean, how it comes out here and we have high content vehicles with, with the premium cards that that's, that's favorable but otherwise I think it's, I mean, it's it's real sad here. I mean, it's the back of strong order book that we are delivering here and it's in, I mean that's indicated that we should outperform this year as well. So it's really only the mix. That is maybe more positive than than than what you indicated.
Would it be a function of in the context of Chip? Shortages, automakers essentially steering there. Fewer available chips to Summer the highest content that vehicles. And if that's the case, is that something that could be could be sustainable, longer-term? Or is that something that just last during the time where the shortages are dead?
As I indicated before. I mean it's it's plays out very different between the different camps in terms of how they are impacted. And what we can see, if we have reshuffling in their programs, which will terms where, of course, they need to make their priorities where they get past used for the the Civil conduct life that they get. So, so I'll talk to to imagine that they of myself from from that point of view, when support this
Could be but I mean we don't have the full inside or not.
Okay, and then a question on the order intake, I think you commented in the press release that and in the slides it was stable year-over-year was off a comment and dollar term or a win rate. And I guess what what what is the expectation for this year compared to last year. I mean, you know, we we we only give birth the shares of the speak once a year when we close the year. What we indicating here is the order intake was in line. We lost years in in dollar terms.
Okay? And just to remind us last year, was it impacted by COVID-19 yet? Or was it a good result in Q4? I mean last year, q1, Thursday, I mean, it was no code within impact in q1. Follow from on the record. No.
All right. Thank you. Thank you. Our next question comes from Chris McNally from ever call, please. Go ahead.
Thanks team. Two quick ones. Just one on the first one. I'm going mats given the 90 basis points. You talked a little bit about it takes some time 6 a.m. To p<expletive> it through things like stealing in belt and and fasteners. Would it make sense to think about even if raw materials stayed where they are flat right now, we probably have so raw material pressure into next year just given the annualization and and maybe it takes them, you know one or two price increases to send it through, you know, we should think about this pressure probably continuing into a job the next year.
Sorry and we don't give guidance from 2022, but of course, if you look at the impact we have in the first quarter and should the raw material prices remain at the level where they are currently, then I think it would also be fair to <expletive>ume that there would be a carryover effect into the next year.
Okay, great. And then the second just on a longer-term. Question on on your content for vehicle growth, primarily from the market share gains and I know you don't get comments on Thursday, is it possible that we could think about, you know, based on your Revenue projections where you think that puts you, in terms of market share for, for 20 21, you know, sort of back-of-the-envelope. If it could be sort of four dead for maybe 45% and it sounds like from your order book over the last three or four years, you'll probably Peak out at something forty-seven, Forty-Eight percent. So, you just wanted to do have a high-level view that a 22 and 23 will still see market share gains. So so good content for vehicle growth. I mean, we we, we don't give market share off by a year, but we have indicated is that we believe that we will grow into a market share position of around, you know, mid-forties around 4.
55 is in the years to come here and and the page there. We have not given so to speak but I mean we have built a strong order book and we continue to build audible care. So we will Define that market share going forward.
Okay, great.
Thank you. Just as a quick reminder. If you wish to ask an audio question, please press zero one on your telephone keypad. Once again that 01 or your telephone number. If you wish sauce can order our next question comes from Agnieszka from from Nadia, please go ahead.
Thank you. My first question is concerning your head can situation when I look at the number of your indirect workers. I can see that the number is Thursday to increase. Now, in in the quarter, can you share with us? How do you think about the money situation and also is it the kind of step back from your structural action-packed? Given the fact that the car production quarterly basis is slower now than what it was for for example.
I mean first of all if you compare to you over here you go ahead count the stone on if you take the support a head count down around eight hundred employees and then it's more or less Flash versus end of the year. So we we've had some selective additions that we have had, uh, mainly in the area of it and digitization to support their strategic initiatives wage there. Uh, but we email very very close focus and also headcount focused and a very diligent about any additions and if you said also before we're not through yet with the wage and step off the the efficiency program, which will most likely be completed here during the second quarter.
Perfect. Thank you. And then also I would like to ask about the pricing environment right now for your industry. I think that historically used to say that you meet the kind of price pressure of two thousand percent every year, is the situation of the same and and now also excluding the raw material impact. So, in general, do you see similar pricing pressure on your products or is becoming a bit more positive for you guys know? I think it's definitely within that range today and Thursday. We don't expect to see any changes to the as going forward in neutral message. So 224 is is a good good reference point still off.
Thank you. Thank you. Thank you. I appears to be no travel questions, registered. So now I'm back to the speaker.
Thank you. Can I see you before when today is cool? I would like to say that our progress in the past few quarters, support our confidence, in our journey, towards our mid-term targets off, and our opportunities, for shareholder value creation. Despite the fact that globalized production is almost back to the 2019 level, we are still in the panoramic and our first priority Remains the health and safety of our employee. Our second quarter earnings call is scheduled for Friday July 16th 2021. Thank you, everyone for participating. In today's call, we sincerely appreciate your continued interest in autoliv until next time, stay safe.
TG.